Standard 1: Oversight of Operations and Staff - Organizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.
VIPCare does not meet this Standard because its board of directors does not:
- Review the performance of the chief executive officer at least once every two years.
- Have an approved conflict of interest policy.
Standard 6: Board Policy on Effectiveness - Have a board policy of assessing, no less than every two years, the organization's performance and effectiveness and of determining future actions required to achieve its mission.
VIPCare does not meet this Standard because:
- The board of directors does not have a written policy stating that, at least every two years, an appraisal be done assessing the organization’s performance and effectiveness and determining future actions required to achieve its mission.
Standard 7: Board Approval of Written Report on Effectiveness - Submit to the organization's governing body, for its approval, a written report that outlines the results of the aforementioned performance and effectiveness assessment and recommendations for future actions.
VIPCare does not meet this Standard because:
- The organization’s effectiveness assessment did not take place within the past two years. The last assessment was completed April 1, 2006.
Standard 9: Fund Raising Expense Ratio - Spending should be no more than 35% of related contributions on fund raising. Related contributions include donations, legacies, and other gifts received as a result of fund raising efforts.
VIPCare does not meet this Standard because:
- According to its unaudited financial statements for the fiscal year ended December 31, 2009, the organization's fund raising costs were 46% ($31,762) of related contributions, which totaled $69,703.
Standard 11: Financial Statements - Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles. When total annual gross income exceeds $250,000, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $250,000, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $100,000, an internally produced, complete financial statement is sufficient to meet this standard.
VIPCare does not meet this Standard because:
- It states it does not have audited financial statements for the past fiscal year.
Standard 12: Detailed Functional Breakdown of Expenses - Include in the financial statements a breakdown of expenses (e.g., salaries, travel, postage, etc.) that shows what portion of these expenses was allocated to program, fund raising, and administrative activities. If the charity has more than one major program category, the schedule should provide a breakdown for each category.
VIPCare does not meet this Standard because, in the organization's financial statements, the detailed functional breakdown of expenses:
- Only included one program service category. It did not include a detailed breakdown of expenses for each of its major program activities.
Standard 14: Budget - Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fund raising, and administration.
VIPCare does not meet this Standard because, when the organization provided budget information, it indicated that the budget:
- Included total projected program service expenses, however, did not break these expenses down by major program category.
Standard 16: Annual Report - Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fund raising and administrative categories as in the financial statements, and (iii) ending net assets.
VIPCare does not meet this standard because:
- The organization states it does not have an annual report covering activities conducted in the past year.
Standard 17: Web Site Disclosures - Include on any charity websites that solicit contributions, the same information that is recommended for annual reports, as well as the mailing address of the charity and electronic access to its most recent IRS Form 990.
VIPCare does not meet this Standard because the organization's website, www.vipcare.org, does not include all of the recommended information for those charity websites that solicit for donations. Specifically, it does not include:
- The organization’s mission statement.
- A summary of program service accomplishments.
- A roster of the board of directors.
- Total income.
- Total program expenses.
- Total fund raising expenses.
- Total administrative expenses.
- End of year net assets.
- The organization’s mailing address.
- Electronic access to the organization’s most recent IRS Form 990.